Franchises: 70% of shops are closed

The Córdoba Chamber of franchises, in conjunction with the Argentine Association of Brands and Franchises (AAMF) and its peers from Mendoza and San Juan, conducted a survey among the main franchise chains and retail trade across the country.

The objective was to reveal the impact on their sales in the week of March 16-22, a few days before the start of the quarantine, and what should be the main support measures from government agencies.


In the total of 70 surveyed chains, all the retail trade items were represented: gastronomic (43 percent), specialized shops in their different types (19), services of all kinds (18), textiles (10), aesthetics and Health. (6) and Training (3).

“The first great conclusion is that almost 70 percent of businesses have completely stopped operating, which implies zero income to meet their obligations such as wages, rents, supplies, among others,” argue the entities.

20 percent maintain e-commerce operations with home delivery, with sales declines between 50 percent and 85 percent.

Only 10 percent is kept open, with sales drops of 55 percent on average. Registering sales growth only in the case of supermarkets, with 30 percent.


As for the support measures claimed by all the SMEs surveyed, they include, among others: exemption from the payment of employer contributions; lines of credit at zero rates and automatic granting for the payment of wages, facilitate quick access to the Productive Recovery Program (Repro) system, postpone the payment of debts with financial entities, and freeze the financial interests of the arrears they have the companies.

Nine out of 10 SMEs in the sector considered “essential” or “very important”: suspend or reduce the payment of rents during quarantine and finance the payment of services: electricity, gas and water, among others.

Written by Argentina News

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